Real Estate Foreclosures » Foreclosures

Foreclosure Rescue Scams Exposed by Investigative Guy John Mattes

admin — Thu, 19 Nov 2009 23:36:25 +0000

San Diego, United States (IBtimes.com – November 18, 2009) THE Financial crisis is due to force 2.5 million homeowners into foreclosure in 2010. Add to that, con artists are preying on homeowners offering phony mortgage modification for $3,000. All the con men do is steal. Real full foreclosure story here.

You can view John Mattes’ blog at The Investigative Guy

The Foreclosure Process

tbone — Sat, 18 Apr 2009 00:02:30 +0000

The foreclosure process can be daunting to anyone. Many Americans are going through the foreclosure process just like you. Fortunately there is hope with the unprecedented mortgage bailout program. You may be eligible to have your loan re-modified even if you are currently in the foreclosure process. Do not let the stress and pressure overwhelm you because there is hope in avoiding the foreclosure process. It is not too late to save your mortgage. To avoid foreclosure you need to contact your loan provider immediately or let a licensed professional help you through this difficult time for you and many others in your situation. The key to foreclosure avoidance is to act before it is too late. If you are currently in foreclosure there is still hope. Many others have had their current payments become not due and intstead their entire loan renegotiated and their payments reduced. Act now to avoid the foreclosure process and begin your road to a better day. Do not let the stress of foreclosure stop you from taking action now.

Effects of Short Sale & Foreclosure on Your Credit Report

admin — Sat, 01 Nov 2008 14:30:37 +0000

A short sale is one of the methods homeowners use in order to avoid a real estate foreclosure. Sometimes short selling the house is the best way out of a real estate foreclosure. One of the main reasons people chose a short sale is that they cannot afford to keep their house regardless of any payment plans offered by the lender. The advantage of opting to short sale is that there is no costly and lengthy process of foreclosure. Moreover, the owner of the property can pay off his/her loan in an amount which is less than what he owes. Nevertheless, before choosing to short sell or foreclose, you should consider the effects each will have on your credit score.

A Short sale is a simple concept, when proceeds from the sale of the house are less than the amount the owner owes on the mortgage, a short sale occurs. Many lenders accept the sales from a short sale and relieve the borrower of his/her debt. By accepting the proceeds from the short sale they forgive the rest of what the owners of the house owes on the mortgage. This happens when the owner of the house is not capable anymore of paying his mortgage. However lenders are not always so anxious to enter into a short sale agreement, lenders would only enter into such negotiation if the home owner is several months late in his payments and a real estate foreclosure is looking inevitable. If you are still paying the mortgage or show promise of paying the debt in the future, the lender would not be interested in negotiating for a short sale. Another concern is tax. There is a difference between the amount of the tax on the original loan and amount of tax on the sale. The home owner may potentially be held liable for this difference.
A foreclosure will cause more damage in the house owner’s credit report. Usually, the score in the house owner’s credit lowers by 200 to 300 points.

However, the effect a short sale has on the home owner’s credit report is far less damaging compared to the effects of a real estate foreclosure. Typically, the losses in the credit scores range from 80 to 100 points. When the owner chose foreclosure will have to wait up to three years before he could buy a new home at a fairly good interest rate. Whereas, a home owner who chooses a short sale option will only have to wait 18 months to buy a new home.

In deciding whether to choose foreclosure or a short sale one should always think about the possible effects each option will have on their credit score.

Tips to Buying Foreclosed Homes

admin — Thu, 30 Oct 2008 14:14:13 +0000

During these times, the economy is performing very poorly, and it pushes many mortgage lenders to increase their rates on adjustable mortgage. This then affects many home owners in keeping up with the payments. Lenders opt for an increase in rates because of a major decline in the housing market, which years ago is very strong and contributes in the economic growth.

Currently, there are a lot of housing markets which have foreclosed homes. These foreclosed homes are vacant and are waiting to be bought by a new buyer. More and more homes are being foreclosed because there are many home owners who are not able to pay their mortgage payments. This then forces them to leave their homes and let the banks foreclose it.

The banks immediately claim these homes at a lower price. The banks do these so that the lost money will be recouped. These homes mostly are of good condition. But then, there are homes which are in poor conditions because of mistreatment or abandoned for a long time. These homes in poor condition require more work before it could be sold to new buyers.

Before buying a foreclosed home, you might want to consider the tips below which could help you in your decision to buy a foreclosed home.

One of the first things you should inspect is the water and electricity connection. These are the necessary utilities which banks turn off after foreclosing the home.
The next one is to check the neighborhood. It is important to know the details of the former home owners. The information you will get will be helpful in marketing the home.
Find out in the area if there are sold homes similar to what you are inspecting. This will give you knowledge on how much time will it take to resell the home if you have a plan of reselling it in the future. Also, you would know how much you would in reselling the home.
Lastly, a good realtor must be hired. Realtors who are professional and qualified have the idea of the ins and outs of vacant and neglected homes. Hiring a real estate agent who knows the area will save you money and time searching or choosing which foreclosed home to buy.